New buy-to-let company formations are expected to fall in 2026, marking the first annual decline in 18 years. This follows a slowdown in landlords transferring their personally owned properties into limited companies.
According to Hamptons, 41,483 buy-to-let companies were established across Great Britain during the first eight months of 2026. This represents an 8% decrease from the 44,802 created in the same period last year. The decline became more pronounced in August, with new incorporations falling 22% year-on-year from 5,363 to 4,198.
The shift is largely attributed to many landlords who stood to gain most from incorporation having already made the switch. Transferring a property can incur significant upfront costs, including stamp duty and Capital Gains Tax. As a result, new purchases are now making up a larger share of properties entering company structures, with Hamptons estimating 51% of properties entering buy-to-let companies this year were new purchases rather than transfers.
Despite the slowdown in new formations, the overall number of buy-to-let companies continues to rise. There were 469,165 operating in Great Britain at the end of August, up from 443,272 at the end of 2025.